Why is communication between estimators and project managers important?

Projects that start with low estimates are doomed to fail

Communication between the estimator and the company’s project manager is essential during the various stages of the project cycle, especially when dealing with projects that have features that go beyond the company’s usual area .

Communication related to the choice of projects to be tendered

In many cases, the estimation team makes the mistake of boasting about the number of estimates submitted and won during the year, without taking into consideration the end results .

When it comes to selecting the projects to be tendered, the project manager is the key stakeholder . Therefore, it would be better for the team to only commit to the process of estimating a project if its administration shows interest . It would be better for their efforts to be focused on selected projects .

Communication during the cost estimate process

It is essential for the project manager to contribute to the estimation in order to avoid overstated costs leading to the loss of the project, or understated costs that would cause the company to make a loss on the project .

Here are a few key points for discussion:

a) Reading reports, specifications

The estimator and project manager should read all the tender documents so they can exchange views . Examples of cases with a significant impact on prices to be discussed: • The geotechnical report

The nature of the soil to be excavated: what is the soil class? Is it rippable rock that could be excavated with a shovel? Or is it solid rock that requires a rock breaker or blasting? Is this a type 2 excavation requiring support? What type of support will be required? Sheet piling? Or will a cheaper system suffice? Is there a way to avoid support costs by looking into excavation slopes? • The environmental report

Is the project located in an area where noise must be controlled? Does the estimator need to factor into the costs that certain activities need to be carried out in off-disposition periods? What is the project manager’s plan for noise abatement (demolition/ concrete work/compressor/etc .), or for removing construction dust? Does the environmental report identify specimens to be kept at their place – what are the linked costs?

Does the report mention the presence of asbestos? Is the soil contaminated? • Mechanical and electrical plans

The project manager will be the best person to elaborate on mechanical and electrical costs such as: indicating duct routings and sizes; advising whether these systems will require additional structural or sealing work; suggesting methods of handling heavy equipment, etc . • Offering alternatives

An experienced project manager will be able to offer alternatives that could lower the overall cost of the project, without affecting quality . These alternatives could help the offer stand out, by giving it added value .

b) Preliminary schedule

The estimator and the project manager should combine their efforts and experience to establish an achievable preliminary project schedule . On their own, even an experienced estimator could underestimate or overestimate the length of the project .

This preliminary schedule will allow: • Overhead costs of the project to be calculated . • The costs related to winter conditions, if applicable . • The length of the tasks is to be determined, and therefore an estimation of the manpower and equipment required . • Periodic financial plan for the project to be established and lines of credit to be discussed with financial institutions, etc . • Labour and equipment histograms to be created, which will allow for more accurate costing . • The S curve to be drawn .

c) Implementation method

The project manager will recommend the most reliable methods of implementation; some examples are as follows: Determining the angle of the excavation . • The method used to support the excavation, if required . • The method to be used for trenchless pipe drilling, depending on the nature of the soil . • Determining the method for soil decontamination .

d) Team productivity

The project manager will determine the team productivity for each task, based on practical experience with similar projects, and the estimator will be able then calculate the costs accordingly .

e) Type of equipment

Similarly, the project manager will specify the type of equipment required for each task and its productivity, and it will again be up to the estimator to calculate the costs accordingly .

f) Subcontracting

The project manager will specify the scope of work to be performed by the company’s own teams, based on their availability, and the scope of work to be performed by subcontractors .

g) Risks

Finally, the project manager’s team will analyze the work that could be considered high-risk or out of the ordinary, and recommend additional measures, the cost of which will be estimated by the estimator .

h) Site visit

It would be extremely helpful for the estimator and the project manager to visit the project site jointly to discuss the elements to be considered in the estimate .

Example 1

Construction work inside a subway station:

A discussion needs to take place to define the scope of the work that will be carried out during periods when the subway is not in operation, as well as how bulk materials will be transported, etc . All these methods have a repercussion on the direct and indirect cost estimates .

Example 2

Building tunnels for a new subway station:

It is impossible to start calculating the estimate until the excavation plan of the tunnel has been developed by the project manager’s team . The estimator and the project manager will need to read the project geotechnical reports carefully before: • Determining the method used to excavate the tunnel – blasting, tunnel-boring machine, cutting machine, rock breaker, etc . • Comparing the advantages and disadvantages of each method . • The estimator will make a cost comparison for each method in order to reach a conclusion . It would be unthinkable for the estimator to base their prices on one method of excavation and for the project manager to subsequently opt for a different and more expensive method .

Communication during project execution

The estimator must provide the implementation team with full records once the contract has been won, showing the all the assumptions made during the estimate .

Communication during the project closure period (lessons learned)

Communication during the project closure period is extremely useful for future estimates (lessons learned) .

Estimators must learn from each project . They must check: • Were their take-off quantities accurate? • Were the costs and productivities correct? • Was the preliminary schedule realistic? • Was the projected profit achieved? • Was the full scope of work covered in the estimate?

Conclusion

Based on the foregoing, I believe there are two essential elements for company success: • Communication (horizontal and vertical) between the estimating and construction teams is a critical success factor . • Team spirit: one person alone cannot lead a company to prosperity . On the other hand, team spirit is the key to success .

About the author

Mansour Shami, PQS, CEC, is a Senior Estimator and Project Manager for MACOGEP . He has 41 years of experience in construction, estimation, and program management . He graduated in civil engineering in Syria in 1979, passed the PMP certification in 2008, and later obtained a DCS in Estimation in Montreal in 2018 .

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